Example: Surcharge tax calculations

Example description

Your store collects extra surcharge for the order in some geographical zone. The tax of surcharge must be calculated according to local business lines.

The following tables describes the tax that must be collected:

Surcharge tax calculation example implementation

To use the calculation framework to calculate taxes for this example, complete the following steps:

1. Define the jurisdiction groups and jurisdictions.
2. Define the tax categories.
3. Define the calculation codes.
4. Define the calculation rules.
5. Define the calculation scales.
6. Define the calculation ranges.
7. Define the look-up results for the calculation ranges.
8. Associate the calculation scales with the calculation rules.
9. Attach the calculation codes to the all catalog entries.
10. Associate the calculation rules with the fulfillment center.
11. Allow the calculation usages to not calculate a value for an OrderItem.
12. Optional: Set the default surcharge tax calculation codes for the store. You only complete this step if your store does not already have default calculation codes for surcharge tax.

Defining tax jurisdiction groups and tax jurisdictions

The information for jurisdictions, jurisdiction groups, and the relationships between them are defined in the following database tables:

JURSTGROUP

This table defines jurisdiction groups.

JURST

This table defines jurisdictions.

JURSTGPREL

This table defines which jurisdictions belong to which jurisdiction groups.

Based on the description in the surcharge tax calculation example description, the jurisdiction, jurisdiction group and the relationship between them can be defined based on the following table:

Defining tax category

The default value for the surcharge tax type is defined in the language-independent bootstrap file. A tax category is required for each combination of tax type and jurisdiction group.

The following table shows the tax category that can be defined based on the example description:

Each tax category is assigned a unique identifier. The unique identifier is used to associate a calculation rule with a tax category.

Defining tax calculation code

Calculation code must be defined in this example because the tax applies to all items in an order. Calculation code should be associated with a CalculationCodeQualify calculation method.

Here are the key properties that you must define for the calculation code:

Defining tax calculation rule

Generally, percentage tax calculation requires one calculation rule for each calculation code and each tax category.

Here are the key properties that you must define for the calculation rule:

Defining tax calculation scale

A calculation scale is required for each combination of calculation usage and jurisdiction group. It is a percentage calculation scale and all its calculation ranges start with zero, which is convertible to all currencies. The calculation scale is used to find the percentage tax rate.

Here are the key properties that you must define for the calculation scale:

Defining tax calculation range

Because the tax rate applies to all items in an order regardless of the item price, weight, or quantity, only one calculation range is required for calculation scale.

Here are the key properties you must define for the calculation range:

Defining look-up results for tax calculation range

Each calculation range needs a set of look-up results. For this example, the look-up result is the percentage tax rate. The look-up result is a percentage value, so you do not need to associate currencies or quantity units with the look-up results.

Here are the key properties that you must define for each calculation range look-up result:

Associating tax calculation scale with tax calculation rule

Each of the calculation scales that you have defined must be associated with the defined calculation rules in the CRULESCALE database table. The relationship between the defined calculation scales and the defined calculation rules is shown in the following table:

Attaching tax calculation codes

To use the newly defined surcharge tax calculation code, you must attach the calculation code to the order items. Attach them indirectly, because the calculation code applies to all order items resulting from a customer purchasing a product from the store catalog, not just to one item.

To associate the calculation code with all items in the store catalog, use a catalog entry ID of null. The identifier for the store will be called Store.

Populate the CATENCALCD database table with the following information:

Associating tax calculation rule with fulfillment center

To associate a fulfillment center with a tax calculation rule in the TAXJCRULE database table. This ensures that the TaxCalculationRuleQualify calculation method chooses a calculation rule that matches one of the tax jurisdictions when shipping from a fulfillment center to a shipping address.

Allow surcharge calculation usage to not calculate a value for an OrderItem

By default, WebSphere Commerce throws an exception when a calculation usage does not return a value for an order item. You can prevent this by setting the calculation usage indicator (STENCALUSG.USAGEFLAG) to 1. When the indicator is set to 1 and the calculation usage does not return a value, WebSphere Commerce assumes that the calculated value is 0.

The following table contains the information required to allow surcharge tax calculation usage to not calculate a value for an OrderItem:

Defining default tax calculation codes for a store (optional)

The STENCALUSG database table is also used to define the default calculation codes for a store. Default calculation code information must appear in the same database row where the USAGEFLAG column will be set.

The following table contains the information required to define the default surcharge tax calculation code for the store: